WTI crude oil futures slipped toward $74 per barrel on Wednesday, pulling back from a more than one-year high and marking their first decline since the outbreak of direct conflict, as government assurances to protect key trade routes eased immediate supply concerns. The crisis has effectively choked off commercial traffic through the Strait of Hormuz, after the IRGC vowed to “set ablaze” any vessel attempting to pass.
In an effort to avert a broader energy shock, President Trump directed the DFC to provide political risk insurance at competitive rates, while Treasury Secretary Bessent outlined a forthcoming package of measures aimed at stabilizing conditions in the Gulf. Yet, despite US commitments to organize naval escorts, most major shipowners remain at anchor, sustaining a substantial geopolitical risk premium as markets wait for a fully operational federal insurance backstop.
At the same time, Iranian UN Ambassador Ali Bahreini rejected any suggestion of indirect talks with Washington, insisting that “the only remaining language is defense” following strikes that killed senior Iranian leaders.
